Next budget to be slightly expansionary

Finance Minister Abul Hassan Mahmood Ali yesterday said the government would transition from a tight fiscal policy to a slightly expansionary one in the next budget.

"Over the past few years, we have been formulating tight budgets. But now we are thinking of how we can move away from that," he told reporters after a meeting with visiting International Monetary Fund (IMF) Executive Director Krishnamurthy Venkata Subramanian at the secretariat.

He added that the government was trying to see how an expansionary budget could be made and would start implementing it from the next fiscal year.

However, the minister did not respond when journalists asked how the budget could be expansionary when it will increase by only four percent compared to the current budget.

He said the priorities for the next budget would be bringing the country's economy back on track and ensuring that prices of essentials remain within people's purchasing capacity.

Ali added that the highest priority would also be given to improving the foreign currency reserves, containing inflation, and increasing revenue earnings.

There are challenges in those areas, but they have to be overcome, he added.

The finance minister also sought action against loan defaulters, saying, "I want to catch them."

When journalists pointed out that loan defaulters are often influential individuals and questioned if it would be possible to nab them, he replied, "Let's see whether I can do it."

Ali stressed that steps had been taken against a former inspector general of police, whose assets have been confiscated, and a former army chief, so it is possible to catch loan defaulters.

When journalists asked why the US government had issued sanctions against a former army chief but the Bangladesh government had not taken any steps against him yet, the minister said, "The [Bangladesh] government did not take any steps, but the army will take a step. The army can do it."

When journalists brought forth observations made by the Centre for Policy Dialogue's Distinguished Fellow Debapriya Bhattacharya on the country's present economic situation, the minister expressed dissatisfaction and replied, "Debapriya Bhattacharya? Who is he? I know him."

He added, "Debapriya will definitely criticise us because he belongs to the opposition group."

He went on to clarify, "Anyone can criticise the economy. But his tone makes it a lot more different."

Then, when asked about a recent comment made by economist Wahiduddin Mahmud, who said the economy was in distress, the minister took a long pause and said, "What does that mean? I don't understand. Only critical comments do not make anyone a champion."

The finance minister added that the Bangladesh Bank governor was trying to control inflation but is being criticised and blamed for a lack of vision.

"He is a former finance secretary. Did he become the finance secretary without any qualities?"

Ali added that journalists globally are not allowed to access the central bank. However, he said he would talk to the central bank governor so journalists can enter the central bank like before.

He further said the government expects to get the third tranche of the IMF loan in June.